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What is a Herd Share, and Are They Safe?

With the wave of folks wanting to become more self-sufficient, today we take a look at what is a herd share and are they safe? From the outside looking in this looks like an awesome idea until you realize what the consequences to your health could be after signing up. I am not by any means saying that herd shares are going to make anyone sick, but there is no real regulation surrounding them in many jurisdictions and you are signing a waiver to release the farmer from responsibility should something happen in many cases.

A herd share is a contractual arrangement between a farmer and an owner of livestock – the shareholder or member – through which the shareholder is able to obtain raw milk, meat, offal and other profits of the livestock proportionate to the shareholder’s interest in the herd. Herdshares include cow shares, goat shares, and sheep shares, and are sometime referred to as “farm shares” or “dairy-shares,” although the term “farm share” can also refer to an entire farm (buildings, land, equipment, etc.) held in joint ownership.

A herd share enables consumers to obtain raw (unpasteurized) milk in a jurisdiction that may otherwise prohibit the sale of raw milk. Parties may also choose to enter into herd share agreements even in jurisdictions that do permit some type of raw milk sale because a herd share may provide a more economically secure business model for a dairy farmer than conventional dairy farming otherwise would provide for.

Under the terms of a herd share agreement, the shareholder purchases a share of a dairy farmer’s herd and receives a portion of either the product or the profit of the herd proportionate to the shareholder’s corresponding interest. Unlike a direct sale of raw milk for consideration, a shareholder pays a one-time fee in exchange for her undivided interest in the herd. This is the purchase agreement or the bill of sale. In addition to the bill of sale, the shareholder pays a monthly boarding fee (or “agistment fee”) that covers the farmer’s cost for labor and maintenance of the herd.

For example, if the farmer has one cow valued at $800, the shareholder may purchase a 1/25 undivided interest in the herd (or here, a single cow) for $32.00. The parties would execute a bill of sale transferring a 1/25 ownership stake in the cow from the farmer to the shareholder in exchange for $32.00. If the cow produces 30 gallons of milk per week, the shareholder may choose to receive up to 1 and a 1/5 gallons of milk per week (30 gallons of milk divided by 25 possible shares). If the cow is slaughtered, then the shareholder may also be entitled to 1/25 of the meat or the value of the meat. If the cow is shown at a competition and wins a prize, the shareholder may choose to receive up to 1/25 of the value of that award.

In addition to both the bill of sale and the boarding fee, the herd share agreement may include terms for a trial period, collection and storage of the milk, care of the herd, maintenance of the farm, liability, default, and risk of loss. Terms for the boarding, care of the herd, and handling of the milk may be separate documents.

Dangers of Raw Milk:

Raw milk is milk from cows, sheep, and goats — or any other animal — that has not been pasteurized to kill harmful germs. Raw milk can carry dangerous germs such as SalmonellaE. coliListeria, Campylobacter, and others that cause foodborne illness, often called “food poisoning.”

These germs can seriously injure the health of anyone who drinks raw milk or eats products made from raw milk. However, the germs in raw milk can be especially dangerous to people with weakened immune systems (such as transplant patients and individuals with HIV/AIDS, cancer, and diabetes), children, older adults, and pregnant women. In fact, CDC finds that foodborne illness from raw milk especially affects children and teenagers.

Dangers of Uninspected Meat:

Lynn McMullen, a meat microbiologist and University of Alberta professor, said diseases carried by animals are the main risk posed by uninspected meat making its way to consumers. “Animals can have just about any pathogen,” McMullen said Tuesday. This could include such things as Shiga toxin-producing E. coli, which can kill people, she said. There’s also the risk of salmonella, campylobacter and more. “Cooking will get rid of bacterial pathogens and viruses, but if they’re heavily contaminated it increases the risk during handling that they’re going to cross-contaminate.”

At this point is the risk worth the reward? That is ultimately up to the consumer, but being aware of the risks is something that Make Food Safe is passionate about.

Samantha Cooper

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